ANTM – Performance supported by higher ASP

Aneka Tambang (ANTM) – BUY (from Hold)
Price: Rp1,410 – Target Price: Rp2,100

Performance supported by higher ASP

  • Revenue and net income during 1H11 grew 13% YoY and 35% YoY respectively.
  • 1H11 performance was inline with our estimate, revenue was 50% from our FY11 projection and net income was 58%, slightly above our projection.
  • Growth in revenue and net income was due to higher sales volume of gold and nickel ore, dividend income from investment in associate companies, changes in accounting and higher ASP.
  • The company also plans to issue bond by the end of this year to finance FeNi Halmahera project.
  • Currently, ANTM is trading at 7.43x PE’12F. We maintain our Target price at Rp2,100, reflecting 10.4x PE’12F.
  • However, we change our recommendation from Hold to BUY as the current price has 40% upside to our TP and there is an opportunity to buy. BUY
  1. ANTM_111004_YY (325.8 KiB)